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Viewing: Blog Posts Tagged with: Glenn, Most Recent at Top [Help]
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1. Health-care Reform is Making a Comeback

Elvin Lim is Assistant Professor of Government at Wesleyan University and author of The Anti-intellectual Presidency, which draws on interviews with more than 40 presidential speechwriters to investigate this relentless qualitative decline, over the course of 200 years, in our presidents’ ability to communicate with the public. He also blogs at www.elvinlim.com. In the article below he looks at health-care reform. See Lim’s previous OUPblogs here.

After attempting a pivot to jobs, the Obama administration has realized that a hanging cadence on health-care will not do. Perhaps they should never have started it, but closure is what the administration now must have. An encore after the strident audacity of hope on health-care reform was temporarily dashed after the election of Scott Brown to the Senate.

In the immediate aftermath of that election, Democrats were in danger of exchanging over-confidence for excessive humility. After Obama’s historic election the year before and Arlen Specter’s party switch, Democrats were overtaken by hubris that Obama’s tune of change could be used to overturn Washington and to compel it toward a Progressive utopia. But just as Democrats were foolhardy to think that 60 votes in the Senate gave them invincible power, they somehow thought after the Massachusetts Senate election that 59 made them completely impotent.

In the media, we hear, conversely, about the conservative comeback in hyperbolic terms. On Saturday, Glenn Beck, not Sarah Palin or Mitt Romney, delivered the keynote speech in the largest annual conservative gathering, the CPAC conference. If Beck’s stardom exceeds that of the winner of the CPAC straw poll this year, Ron Paul, it is because the conservative movement, charged as it is, remains a movement in search of a leader. It is also a movement, as Beck’s criticism of Progressive Republicans in his speech reveals, which is not exactly in sync with the Republican party – the only machine capable of taking down liberal dreams.

And so a Democratic comeback on health-care reform is afoot. With one vote shy of a fillibuster-proof majority, Senator Harry Reid has opened the door to the Budget Reconciliaton process that more Progressive advocates of health-care reform like Governor Howard Dean have been pushing for a while. While it is not clear that there are 50 votes in the Senate for the public option, assuming that Vice-President Biden will cast the 51st, what is clear is that Democrats are much more likely to push through a liberal bill with the veto pivot sliding to the left by ten Senators.

In the White House too, we see a coordinated move to bring Reconciliation back as an option. Obama used his weekly address on Saturday to lay the ground work when he warned that “in time, we’ll see these skyrocketing health care costs become the single largest driver of our federal deficits.” He said this because in order to use Reconciliation, Democrats must show a relationship between health-care reform and balancing the federal budget.

No one in Washington believes that Thursday’s Health-care Summit will magically generate a consensus when in the past year there has been nothing but partisan bickering. If so, the President is not being naive, but signali

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2. The Republican Party is Not the Conservative Movement

Elvin Lim is Assistant Professor of Government at Wesleyan University and author of The Anti-intellectual Presidency, which draws on interviews with more than 40 presidential speechwriters to investigate this relentless qualitative decline, over the course of 200 years, in our presidents’ ability to communicate with the public. He also blogs at www.elvinlim.com. In the article below he looks at the Republican Party. See his previous OUPblogs here.

A political movement is not the same as the party that claims to represent it.  And the disconnect between the Republican party and the conservative movement is sharper today than it has ever been since the heyday of the Reagan revolution. Consider the rising star of Glenn Bleck – as if one Rush Limbaugh isn’t enough – and the marginalization of Michael Steele, who wasn’t even invited to speak at last weekend’s march in Washington and who was denied the opportunity to speak at a Chicago Tea party in April. The angry voices in town-halls and the national mall are not evidence that the Republican party has found its voice, but that it hasn’t. When citizens feel that elected officials don’t speak for us, we take up arms ourselves (sometimes, literally).

The Reagan coalition is fraying, because the libertarian faction of the conservative movement has had enough of sitting at the back of the movement’s bus. For too long, they bought Ronald Reagan’s and George Bush’s argument that expensive and deficit-increasing wars are a necessary evil to combat a greater evil, but the bailout of the big banks last Fall was the last straw for them. If Irving Kristol once said that neoconservatives are converted liberals (like Ronald Reagan himself) who had been “mugged by reality,” Tea Partiers are conservatives who have woken up to the fact that neoconseratives are no different from pre-Vietnam-era liberals chasing after utopian
dreams.

The reason why Rush Limbaugh and Glenn Beck are the heroes of the movement, and Michael Steele is persona non grata, is because fiscal conservatives no longer trust the Republican party who for too long has placed their agenda on the backburner. This, in turn, has been brought on by the fact that neoconservatives have lost their privileged status within the movement because of the delegitimation of the adventure in Iraq and the onset of the economic recession. While the end of the Cold War vindicated neoconservatism, the events of September 11 gave it a new lease of life. Together, these two contingent facts of history contributed considerably to the longevity of the Reagan revolution, even as the botched and expensive adventure in Iraq put a screeching halt on the neoconservative ascendancy.

Americans today face a crisis in their pocketbooks and not with foreign nations. Tax-and-spend liberals are a worthy enemy, but they are nowhere as scary or as unifying as the “Evil Empire” or the “Axis of Evil.”

This is why Republican public officials are doing a lot of soul searching these days as they try to make sense of the disconnect between their ideology and party that has been brought on by neoconservatism’s decline. The lack of coordination and indeed the widening chasm between the party and the movement can be evidenced in Arlen Specter’s cross-over to the Democratic aisle, Senator George Voinovich’s complaint that his party was being “taken over by Southerners,” and in Olympia Snowe’s and Susan Collins’ overtures to Barack Obama.

Most people will agree that we know exactly what Barack Obama is up to, politically. The right-wing talk-show hosts will be the first to tell us. But we really do not know what the Republican party stands for or who could possibly lead it in 2012. This is because the party has lost its synthesizing logic and lacks a unifying hero. This weekend, a straw poll conducted at the Values Voters Summit put Mike Huckabee on top, with 28 percent of the vote, because the straw pollers are Values Voters, who constitute yet another faction within the conservative movement. But what was more telling is that even though Sarah Palin did not even turn up for the event, she nevertheless garnered the same endorsement as Mitt Romney, Tim Pawlenty, and Mike Pence, at 12% each. This is conservatism in
search of a leader.

Because it is parties that win elections and not movements, Republican members of congress should not be taking any comfort from the passionate protests of the Tea Partiers. Instead, they should be embarrassed about the fact that they have been trying to play catch up with a movement that has lost hope in its elected officials. More importantly, the Republican party must find a new way to unite the neoconservative, libertarian, and traditionalist factions of the movement to have any chance of standing up against a president and party, who in 2010, could well be riding the wave of an economic recovery to electoral success.

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3. MetLife v. Glenn:Another Push for Defined Contribution Plans

Edward A. Zelinsky is the Morris and Annie Trachman Professor of Law at the Benjamin N. Cardozo School of Law of Yeshiva University. He is the author of The Origins of the Ownership Society: How The Defined Contribution Paradigm Changed America. In this article, Zelinsky discusses the U.S. Supreme Court’s recent decision in MetLife v. Glenn. That decision, he concludes, unintentionally reinforces the trend from defined benefit to defined contribution plans. Under MetLife v. Glenn, employers which sponsor and administer defined benefit pensions operate under a conflict of interest which subjects their administrative decisions to greater legal scrutiny.

Wanda Glenn was an employee of Sears, Roebuck & Company (“Sears”) and, as such, was covered by the Sears long-term disability insurance plan. Metropolitan Life Insurance Company (“MetLife”) both administered and insured the Sears plan. Ms. Glenn applied for continuing disability benefits. MetLife, as plan administrator, denied Ms. Glenn’s application for benefits which, if granted, MetLife, as the plan’s insurer, would itself have paid.

Ms. Glenn sued. Her lawsuit made its way to the U.S. Supreme Court which held in MetLife v. Glenn that, in light of the discretion confided to MetLife by the Sears plan, MetLife’s denial of Ms. Glenn’s disability benefit was to be reviewed judicially under a deferential “abuse of discretion” standard. However, the Court further stated, MetLife, as plan administrator, operated under a conflict of interest since any benefits MetLife granted as such administrator MetLife itself also paid as the plan’s insurer. Hence, in assessing whether MetLife, as plan administrator, abused its discretion, the courts must, among other factors, “take account of the conflict” MetLife faced as a plan administrator which was also the plan insurer. Such conflict of interest might “act as a tie-breaker when the other factors are closely balanced.”

MetLife v. Glenn has engendered extensive discussion. However, so far, one aspect of this decision has gone https://blog.oup.com/wp-content/uploads/2007/12/9780195339352.jpgunremarked: MetLife v. Glenn is one more unintended push from our legal system, nudging employers away from traditional defined benefit plans towards 401(k) plans and other similar defined contribution retirement arrangements. After MetLife v. Glenn, the administrative decisions of employers sponsoring and administering defined benefit pensions will typically be subject to greater legal scrutiny than will be the administrative decisions of employers sponsoring and administering most 401(k) and similar individual account arrangements. This greater scrutiny incents employers to shift from their defined benefit pensions to defined contribution plans.

Embedded in the traditional defined benefit pension administered by the sponsoring employer is the conflict of interest stemming from the employer’s obligation, as plan sponsor, to pay the costs of the plan — just as MetLife, as insurer, paid from its premium revenues the costs of the Sears disability plan. In the defined benefit setting, greater plan distributions to participants and beneficiaries require greater employer contributions to the plan. Consequently, any distribution denial by the employer sponsoring a traditional defined benefit pension implicates the conflict of interest in which MetLife found itself: If the employer as plan administrator denies plan benefits, it thereby reduces its costs as plan sponsor.

In contrast, an employer sponsoring and administering a typical defined contribution plan usually has no such conflict of interest since the individual accounts of such a plan belong to the participants. If, for example, an employer, as administrator of a 401(k) plan, denies a participant a hardship distribution from the plan, that denial does not decrease the employer’s costs; it merely delays the distribution to the participant of his 401(k) account until later. Since there is no conflict of interest in that setting, under MetLife v. Glenn, the employer’s decision will receive greater deference if challenged in the courts.

An important factor causing the decline of traditional defined benefit pensions and the concomitant rise of individual account arrangements like 401(k) plans has been the heavy regulatory cost imposed on defined benefit plans. MetLife v. Glenn represents the latest such cost, an unintentional cost, perhaps a small cost, but a cost nonetheless. Employers who sponsor and administer defined benefit plans are now on notice that, because of their conflicts of interest, their administrative decisions will generally receive less deference from the courts than will the comparable decisions of their competitors sponsoring and administering 401(k) plans who do not operate under such conflicts of interest. By itself, this will rarely cause an employer to terminate its defined benefit pension and shift to an individual account arrangement. But, to paraphrase the Supreme Court, this is the kind of cost which can act as a tie-breaker when the decision is close.

Consequently, Metlife v. Glenn, by reducing the deference ultimately granted to employers which sponsor and maintain defined benefit pensions, represents one more small, but unintended, push away from such pensions.

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